Capping of its first quarter as an independent public company following its late September spinoff from Tyco International (TYC), security systems maker ADT (ADT) revealed weaker-than-expected fourth-quarter sales on Tuesday but forecast higher revenue next year.
Looking toward fiscal 2013, the largest U.S. maker of electronic security and monitoring systems sees recurring revenue growth of 4.9% to 5.2%.
Revenue for the three-month period ended Sept. 28 climbed 2.3% to $812 million from $794 million a year ago, missing the Street’s $818.2 million.
Recurring revenue, which comprised more than 90% of total revenue during the quarter, was up 5.2%, driven by higher spending per customer as ADT raised prices.
ADT also added 284,000 new customers, closing the period with 6.4 million accounts, up 1.1% from a year ago. Shares of ADT climbed more than 4% to a 52-week high of $45 Tuesday morning.
“We delivered solid recurring revenue growth fueled by the continued success of Pulse in the residential and small business security markets,” ADT chief executive Naren Gursahaney said in a statement.
The Boca Raton, Fla.-based security company reported net income of $94 million, or 40 cents a share, compared with $93 million, or 39 cents.
Excluding one-time items, ADT earned 43 cents, matching average analyst estimates in a Thomson Reuters poll.
Tyco completed its spinoff of ADT in September and the two began trading as individual companies on Oct. 1. The move was expected to give ADT the ability to expand its portfolio of residential fire and burglar alarms to include remotely activated home management services, while allowing Tyco to focus on its remaining core brands.
“We are excited about the opportunities ahead of us to build on our leadership position and drive ongoing profitable growth,” Gursahaney said.
The company’s board has approved a $2 billion share repurchase program expiring in three years. It also declared a quarterly dividend of 12.5 cents, payable Dec. 18 to shareholders of record on Dec. 10.